XML 20 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2 - Debt Securities
 9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note
2
.
Debt
Securities
 
The following tables present the amortized cost and fair value of available-for-sale debt securities, including gross unrealized gains and losses, as of the dates indicated:
 
   
September 30, 2018
  
   
Amortized
    
Unrealized
   
Unrealized
    
Fair
  
   
Cost
    
Gains
    
Losses
    
Value
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Agency securities
   $
1,137
     $
4
     $
-
     $
1,141
  
U.S. Treasury securities
    
29,910
      
-
      
(22
 )    
29,888
  
Municipal securities
    
97,857
      
766
      
(1,112
 )    
97,511
  
Mortgage-backed Agency securities
    
36,263
      
15
      
(1,225
 )    
35,053
  
Total
   $
165,167
     $
785
     $
(2,359
 )   $
163,593
  
 
   
December 31, 2017
  
   
Amortized
    
Unrealized
   
Unrealized
    
Fair
  
   
Cost
    
Gains
    
Losses
    
Value
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Agency securities
   $
11,289
     $
17
     $
(10
 )   $
11,296
  
U.S. Treasury securities
    
19,987
      
-
      
(16
 )    
19,971
  
Municipal securities
    
101,552
      
2,203
      
(107
 )    
103,648
  
Single issue trust preferred securities
    
9,367
      
-
      
(483
 )    
8,884
  
Mortgage-backed Agency securities
    
22,095
      
46
      
(415
 )    
21,726
  
Total
   $
164,290
     $
2,266
     $
(1,031
 )   $
165,525
  
 
The following tables present the amortized cost and fair value of held-to-maturity debt securities, including gross unrealized gains and losses, as of the dates indicated:
 
   
September 30, 2018
  
   
Amortized
    
Unrealized
   
Unrealized
    
Fair
  
   
Cost
    
Gains
    
Losses
    
Value
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Agency securities
   $
17,900
     $
-
     $
(53
 )   $
17,847
  
Corporate securities
    
7,147
      
-
      
(15
 )    
7,132
  
Total
   $
25,047
     $
-
     $
(68
 )   $
24,979
  
 
   
December 31, 2017
  
   
Amortized
    
Unrealized
   
Unrealized
    
Fair
  
   
Cost
    
Gains
    
Losses
    
Value
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Agency securities
   $
17,937
     $
-
     $
(49
 )   $
17,888
  
Corporate securities
    
7,212
      
-
      
(16
 )    
7,196
  
Total
   $
25,149
     $
-
     $
(65
 )   $
25,084
  
 
The following table presents the amortized cost and aggregate fair value of available-for-sale debt securities and held-to-maturity debt securities, by contractual maturity, as of the date indicated. Actual maturities could differ from contractual maturities because issuers
may
have the right to call or prepay obligations with or without penalties.
 
   
September 30, 2018
  
   
Amortized
   
 
 
 
(Amounts in thousands)
  
Cost
   
Fair Value
 
Available-for-sale debt securities
  
 
 
 
  
 
 
 
Due within one year
   $
29,910
     $
29,888
  
Due after one year but within five years
    
11,547
      
11,644
  
Due after five years but within ten years
    
86,662
      
86,226
  
Due after ten years
    
785
      
782
  
     
128,904
      
128,540
  
Mortgage-backed securities
    
36,263
      
35,053
  
Total debt securities available for sale
   $
165,167
     $
163,593
  
                 
Held-to-maturity debt securities
  
 
 
 
  
 
 
 
Due within one year
   $
25,047
     $
24,979
  
Due after one year but within five years
    
-
      
-
  
Due after five years but within ten years
    
-
      
-
  
Due after ten years
    
-
      
-
  
Total debt securities held to maturity
   $
25,047
     $
24,979
  
 
The following tables present the fair values and unrealized losses for available-for-sale debt securities in a continuous unrealized loss position for less than
12
months and for
12
months or longer as of the dates indicated:
 
   
September 30, 2018
  
   
Less than 12 Months
    
12 Months or Longer
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Losses
    
Value
    
Losses
    
Value
    
Losses
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Treasury securities
   $
29,888
     $
(22
 )   $
-
     $
-
     $
29,888
     $
(22
 )
Municipal securities
    
26,034
      
(720
 )    
6,938
      
(392
 )    
32,972
      
(1,112
 )
Mortgage-backed Agency securities
    
20,213
      
(369
 )    
13,062
      
(856
 )    
33,275
      
(1,225
 )
Total
   $
76,135
     $
(1,111
 )   $
20,000
     $
(1,248
 )   $
96,135
     $
(2,359
 )
 
 
   
December 31, 2017
  
   
Less than 12 Months
    
12 Months or Longer
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Losses
    
Value
    
Losses
    
Value
    
Losses
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Agency securities
   $
10,054
     $
(10
 )   $
-
     $
-
     $
10,054
     $
(10
 )
U.S. Treasury securities
    
19,972
      
(16
 )    
-
      
-
      
19,972
      
(16
 )
Municipal securities
    
8,047
      
(55
 )    
2,314
      
(52
 )    
10,361
      
(107
 )
Single issue trust preferred securities
    
-
      
-
      
8,884
      
(483
 )    
8,884
      
(483
 )
Mortgage-backed Agency securities
    
4,276
      
(25
 )    
14,069
      
(390
 )    
18,345
      
(415
 )
Total
   $
42,349
     $
(106
 )   $
25,267
     $
(925
 )   $
67,616
     $
(1,031
 )
 
The following tables present the fair values and unrealized losses for held-to-maturity debt securities in a continuous unrealized loss position for less than
12
months and for
12
months or longer as of the dates indicated:
 
   
September 30, 2018
  
   
Less than 12 Months
    
12 Months or Longer
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Losses
    
Value
    
Losses
    
Value
    
Losses
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Agency securities
   $
14,104
     $
(41
 )   $
3,743
     $
(12
 )   $
17,847
     $
(53
 )
Corporate securities
    
3,746
      
(5
 )    
3,386
      
(10
 )    
7,132
      
(15
 )
Total
   $
17,850
     $
(46
 )   $
7,129
     $
(22
 )   $
24,979
     $
(68
 )
 
   
December 31, 2017
  
   
Less than 12 Months
    
12 Months or Longer
    
Total
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Losses
    
Value
    
Losses
    
Value
    
Losses
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
U.S. Agency securities
   $
17,888
     $
(49
 )   $
-
     $
-
     $
17,888
     $
(49
 )
Corporate securities
    
7,196
      
(16
 )    
-
      
-
      
7,196
      
(16
 )
Total
   $
25,084
     $
(65
 )   $
-
     $
-
     $
25,084
     $
(65
 )
 
There were
116
individual debt securities in an unrealized loss position as of
September 30, 2018,
and their combined depreciation in value represented
1.29%
of the debt securities portfolio. There were
45
individual debt securities in an unrealized loss position as of
December 31, 2017,
and their combined depreciation in value represented
0.57%
of the debt securities portfolio.
 
The Company reviews its investment portfolio quarterly for indications of other-than-temporary impairment (“OTTI”). The initial indicator of OTTI for debt securities is a decline in fair value below book value and the severity and duration of the decline. The credit-related OTTI is recognized as a charge to noninterest income and the noncredit-related OTTI is recognized in other comprehensive income (“OCI”). During the
three
and
nine
months ended
September 30, 2018
and
2017,
the Company incurred
no
OTTI charges on debt securities. Temporary impairment on debt securities is primarily related to changes in benchmark interest rates, changes in pricing in the credit markets, and other current economic factors.
 
The following table presents gross realized gains and losses from the sale of available-for-sale debt securities for the periods indicated:
 
   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2018
    
2017
    
2018
    
2017
  
(Amounts in thousands)
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Gross realized gains
   $
-
     $
-
     $
-
     $
-
  
Gross realized losses
    
(618
 )    
-
      
(618
 )    
(657
 )
Net loss on sale of securities
   $
(618
 )   $
-
     $
(618
 )   $
(657
 )
 
The carrying amount of securities pledged for various purposes totaled
$37.79
million as of
September 30, 2018,
and
$51.34
million as of
December 31, 2017.